India central bank keeps interest rates on hold

India's central bank held interest rates steady on Tuesday, keeping a watchful eye on inflation as it waits to assess the impact of weak annual rains on food prices. After meeting in financial capital Mumbai, the Reserve Bank of India (RBI) said the benchmark repo rate, at which it lends to commercial banks, would remain unchanged at a steep 8.0 per cent. The move was widely expected by economists, who said the RBI needed time to assess whether a drought situation could emerge and send food prices soaring, according to AFP.